The Internet Shouldn’t Run on Dirty Energy

The internet may seem to exist in the ether, but its plumbing includes a vast network of data centers, also known as server farms, which need power to function. In 2010, data centers represented 2% of all electricity use in the United States. Globally, it equates to 2% of all annual emissions linked to climate change. While that amount may not sound like much, it is almost equivalent to the impact of shipping all goods around the world each year. If the world is to become ever more efficient and reach global climate goals, internet power will need to play its part.

The good news is that an internet powered entirely by renewable energy is closer than many people realize. Leading companies are learning that sourcing renewable energy for data centers is a low-cost way to demonstrate commitment to global climate goals while adding reliability and predictability to energy consumption. Renewable energy costs are already competitive in many states, such as Texas and California. Clean energy can provide a hedge against rising and more volatile electricity prices. In a recent, high-profile example, HP announced in July that it will power all of its Texas data centers with wind energy for 12 years while lowering its operating costs. We are working with Hewlett Packard Enterprise and nine other tech companies toward a goal of an internet powered by 100% renewable energy through our Future of Internet Power Initiative.

To be sure, the efficiency of server farms can be improved, and many companies are already designing truly elegant, low-power servers. But however cleverly designed servers become, the sources of energy used to electrify data centers will have a larger impact on overall efficiency and emissions reduction. That’s why renewables are gaining popularity as a substitute for coal and other carbon-dense power sources for servers. This year, the Department of Energy, through its National Renewable Energy Laboratory, found that more than one hundred information and communication technology companies that consume an estimated 1.5% of U.S. electricity already procure 14% of it from renewable sources. The study assessed renewable energy’s potential to power the internet and found that share could grow to 30–50% in as few as five years, due to commitments companies have already made.

There are clear signs of a potential shift in energy sourcing and consumption—and managers of IT and services operating in the cloud should start paying attention to how they can contribute. Here’s why now is the right time to invest in renewable energy sources for the internet:

Renewable energy can help reduce a cost center. Most credible projections expect the cost of renewable electricity to drop and many traditional sources of electricity to increase. Furthermore, volatility in electricity price — and possibly even reliability — is rising. Renewable energy will become the low-cost source in a growing list of locations. Many managers we speak to still erroneously think of “intermittency” when we mention renewable energy supply. While it is true that renewable energy is not available at all times of the day, it is also true that it’s possible to accurately predict availability and that forecasting tools are improving daily. Better forecasting and investment tools can help ensure that projects meet cost-reduction targets.

There’s never been more choice for renewable electricity. Renewable energy is a new form of electricity supply, and its market entry has opened new doors of choice with, or even bypassing, traditional utilities. Furthermore, demand by tech giants has pushed many data-center providers to get savvy on the options and their benefits. Additionally, managers may be able to unplug from the local utility by adding wind and solar to offices and other facilities, to power smaller servers and on-site data centers.

There are early-mover advantages…and late-mover risks. Google recently announced its goal to go climate-neutral. Others, including Facebook and Adobe, have made big energy-related promises. Nearly 40 companies, including IKEA, Autodesk, and Walmart, have already made commitments to move to 100% renewable energy through the RE100 initiative. The global climate deal reached by 196 countries in Paris on December 12 will accelerate the trend further. These commitments send a powerful demand signal to utilities, developers, and corporate buyers.

Certain states and countries are offering good deals. Electricity markets are regulated by countries and states, which have widely divergent policies. In some locations, renewable energy is growing rapidly, because of regulation and incentives that enable commercial buyers to negotiate directly with electricity providers and developers or to sell surplus to the market. Groups such as BSR’s Future of Internet Power and Rocky Mountain Institute’s Business Renewables Center help buyers find opportunity in this complexity.

An internet powered by 100% renewable energy is within our reach. For business, this means more choices, lower costs, and greater reliability, all while meeting corporate and global climate goals. Our energy supply is currently undergoing a once-in-a-century transformation. These rare transitions are exactly when companies that get ahead of social trends emerge as leaders of the next economy.

Nate Springer is a manager at BSR, a global nonprofit that works with a network of more than 250 member companies to build a just and sustainable world. He manages BSR member relationships with North American utilities and developers.

Kelly Gallo is a manager at BSR, a global nonprofit that works with a network of more than 250 member companies to build a just and sustainable world. She manages BSR’s Future of Internet Power initiative.